According to François Asselin, the increase in labor costs “risks upsetting the revenue/expenditure balance”.
The president of the Confederation of Small and Medium Enterprises (CPME) François Asselin said on Sunday that he feared “Layoffs and business failures”following the reduction in employer contributions planned by the government in its 2025 draft budget. “Such a measure will not encourage wage increases”estimates François Asselin in an interview with the Journal du Dimanche (JDD). “Worse: the increase in labor costs risks upsetting the revenue/expenditure balance and leading to layoffs and business failures”he adds. According to the government, 4 billion euros could be saved thanks to these reductions.
“This increase mainly concerns companies in activities with a high labor rate, in which many employees are paid around the minimum wage: cleanliness, personal services, security…”according to François Asselin. The Minister of Industry Marc Ferracci tried to reassure in the show Sunday in politics on France 3. “This concern is legitimate, we must be very careful about it and I answer above all that this budget will evolve” as part of the parliamentary debate, he said. “Personally, I will be in favor of the proposals of parliamentarians who review the balance in favor of a little more support for businesses, particularly the smallest”assured Marc Ferracci.
Business leaders targeted?
“What is planned by the government is precisely to review the profile of these exemptions so that when an employer increases an employee by 100 euros, he loses fewer exemptions and this is therefore more incentive to increase salaries”continued the minister. For the president of the CPME, “we have an obvious lack of political momentum to tackle France’s real problems: a social system running out of steam, the overadministration of hospitals and National Education, to get to the most urgent”. Business leaders have “the feeling of being a target”also indicated François Asselin.
He also deplores the reduction in learning aid. “A few days ago, the Minister of the Budget committed not to attack SMEs and working people. However, 70% of apprenticeship contracts are signed in SMEs. It is a great success which has contributed to the fall in unemployment in recent years.he assures. As for the reduction in the compensation ceiling for sick leave, François Asselin believes that “it’s the companies that will pay the difference”.
